FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person *   Yang Xiang Dong 2. Date of Event Requiring Statement (Month/Day/Year) 08/06/2008 3. Issuer Name and Ticker or Trading Symbol China Natural Gas, Inc. [CHNG] (Last) (First) (Middle) C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD., SUITE 6708, 67/F, TWO INT'L. FINANCE CTR 4. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) 5. If Amendment, Date Original Filed(Month/Day/Year) (Street) 8 FINANCE STREET, CENTRAL, K3 SAR 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Beneficially Owned

1.Title of Security (Instr. 4) 2. Amount of Securities Beneficially Owned (Instr. 4) 3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5) 4. Nature of Indirect Beneficial Ownership (Instr. 5)

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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Warrants	  (1)	  (1)	Common Stock, par value $.0001	2,830,000	$ (1)	I	Warrants owned by Abax Lotus Ltd. (1) (2)

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Yang Xiang Dong C/O ABAX GLOBAL CAPITAL (HONG KONG) LTD. SUITE 6708, 67/F, TWO INT'L. FINANCE CTR 8 FINANCE STREET, CENTRAL, K3 SAR	  X	Â	Â	Â

Signatures

/s/ Xiang Dong Yang		08/12/2008
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Abax Lotus Ltd. owns seven year warrants to purchase 2,830,000 shares of common stock, par value $.0001, of the Company at an initial exercise price equal to $7.3652 per share, subject to adjustments as set forth in the warrant agreement. The warrants were issued on January 29, 2008 and are exercisable at any time until their expiration on January 28, 2015. Abax Lotus Ltd. also owns 5.0% Guaranteed Senior Notes due 2014 in principal amount of RMB 283,000,000.
(2)	Mr. Yang may be deemed a controlling person of Abax Lotus Ltd.

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